Dominant rural real estate agency outperforms market sales

Media Release
Date 28.3.2012

Dominant rural real estate agency outperforms market sales stats

Latest figures from the Real Estate Institute of New Zealand show leading agency Bayleys has outperformed the market by a stunning margin.

Data released by the institute this month spotlights that there were 147 more farm sales (+72.1 percent) for the three months ending in February 2012 than for the three months ending February 2011. Overall, there were 351 farm sales in the three months to the end of February 2012, compared with 204 farm sales in the three months to February 2011.

REINZ rural market spokesman Brian Peacocke said rural buyers remained focused on grazing, fattening and dairy properties - with indications of a shortage of listings coming through due to the number of transactions that had taken place over the past few months.

“Morale in the rural sector remains high, with the impact of lower product prices being offset by the increase in production from one of the best growing seasons experienced for many years,” Mr Peacocke said.

All regions, apart from Taranaki, recorded increases in sales volumes for the three months ending February 2012 compared with the three months ending February 2011. Canterbury recorded the largest increase in sales (+35 sales), followed by Waikato (+31 sales) and Manawatu/Wanganui (+20 sales). Grazing properties accounted for the largest number of sales - with a 51.3 percent share.

The lifestyle property market also saw a 33.6 percent increase in sales in the three months to February 2012 compared with February 2011. The REINZ figures show 1,243 sales were recorded in the three months to February 2012 compared to 930 sales in the three months to February 2011.

“Sales volume in the lifestyle sector continues to increase, although rising vendor price expectations in some areas are creating obstacles for some purchasers,” Mr Peacocke said.

The healthy news of a steadily growing confidence and recovery in the rural real estate market comes just as Bayleys has released its latest Country magazine showcasing a large selection of rural listings throughout New Zealand – encompassing both productive units and lifestyle blocks.

Bayleys Real Estate country manager Richard Graham said the company’s rural sales figures for the three months ending in February 2012 showed farm sales were up 168 percent – well ahead of the general market’s 72 percent rise.

“Total farm sales for the quarter were 351 - with Bayleys accounting for 161 of these. That’s a 46 percent market share – making us by far the biggest player nationwide in what is a regionally-fragmented agency market,” Mr Graham said.

“That national coverage delivered by the Bayleys network means we can market properties to a far wider audience than a small, regionally-located agency with a presence in just one province.

“That national coverage in turn brings in not only greater enquiry numbers for any listing, but also at the end of the day ensures that vendors receive the widest possible exposure for their property asset, and consequently the best price.

“That is certainly the feedback Bayleys’ rural salespeople have received in growing numbers over the past year – and now it has been underscored by these official sales figures.”

Mr Graham said that leading marketing initiatives such as the company’s Country magazine enabled Bayleys to reach all segments of the rural sector – including lending institutions, accountancy firms, and corporate investors.

“In addition, Bayleys’ rural listings are showcased at a huge raft of nationally-coordinated events - ranging from attending international investment and immigration expo’s, provincial A&P days or the high profile National Fieldays, through to the New Zealand Pro-Am golf tournament, wine festivals, and horse racing meetings,” he said.

“The rural sector is now an incredibly mobile buyer market. We recognise that within the domestic market, to attract a potential buyer from several hundred kilometres away – sometimes even between islands - the marketing reach has to be as broad as possible. Internet marketing does that, but internet marketing is the first simple stage of marketing for any real estate agency.

“The points of difference then come down to such factors as a nationally-recognised and creditable brand, personal representation to key target markets and audiences, the ability to promote offshore both in person and through affiliated partners, and strength through size. When those factors align, as they have done with Bayleys, you see the results in such market domination as reflected by these latest figures from the Real Estate Institute of New Zealand.”

ENDS

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